Modi Govt. Further Reduced Interest Rates On Small Savings Schemes

03 Jul 2017

Read Time : 10 Mins

After demonetaisation, it was GST – Goods and Services (Simple) Tax scheme, which is implemented across India since July 01, 2017. And now be ready for further bad news for specially lower class and middle class people, who is keeping their hard fought money by investing on small savings schemes: like Public Provident Fund (PPF), National Savings Certificates (NSC), Kisan Vikas Patra (KVP) and Senior Citizen Savings Scheme (SCSS).

People who have been banking on small savings schemes for the purpose of savings and investment as well as building their retirement plan, then there is some bad news for them. The NDA government has further reduced the return on small savings schemes – including Public Provident Fund, National Savings Certificates, Kisan Vikas Patra and Senior Citizen Savings Scheme - by 10 basis points. Following these reductions, the interest rate on PPF is now 7.8%, 5 year Senior Citizen Savings Scheme 8.3%, Kisan Vikas Patra 8.5% and NSC 7.8%.

Govt. Interest Rate July 2017

Govt. Savings Scheme

Old Rate (%)

New Rate (%)

PPF

7.9

7.8

NSC

7.9

7.8

KVP

7.6

7.5

SCSS

8.4

8.3

Is this a consequence of historic GST scheme or is it about to happen down the line in order to improve GDP of India? Voices are coming out from many corners, that why petrol/diesel price not included under GST. Is our nation not ready yet to go with 1 Nation 1 Tax scheme? Or GST is timely launched to save guard aam aadmi of India?

Ritam Dutta is an official partner of "Day On My Plate". He is an entrepreneur in mind and passionate blogger by heart. Moreover, he is also an academician, author, public speaker, investor, and internet personality.